Banco Comercial Portugues

Investor Presentation • Apr 30, 2024

CONSOLIDATED RESULTS

30 APRIL 2024

1

1Q24 BANCO BPI CONSOLIDATED RESULTS

DISCLAIMER

• The purpose of this presentation is purely informative and should not be considered as a service or offer of any financial product, service or advice, nor should it be interpreted as, an offer to sell or exchange or acquire, or an invitation for offers to buy securities issued by Banco BPI ("BPI") or any of the companies mentioned herein. The information contained herein is subject to, and must be read in conjunction with, all other publicly available information. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information set out in the relevant documentation filed by the issuer, having taken all such professional or other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in this presentation.
• BPI cautions that this presentation might contain forward-looking statements concerning the development of its business and economic performance. While these statements are based on BPI's current projections, judgments and future expectations concerning the development of the Bank's business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from BPI's expectations. Such factors include, but are not limited to the market general situation, macroeconomic factors, regulatory, political or government guidelines and trends, movements in domestic and international securities markets, currency exchange rates and interest rates, changes in the financial position, creditworthiness or solvency of BPI customers, debtors or counterparts.
• Statements as to historical performance or financial accretion are not intended to mean that future performance or future earnings for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed as a profit forecast. In addition, it should be noted that although this presentation has been prepared based on accounting registers kept by BPI and by the rest of the Group companies it may contain certain adjustments and reclassifications in order to harmonize the accounting principles and criteria followed by such companies with those followed by BPI.
• In particular, regarding the data provided by third parties, BPI does not guarantee that these contents are exact, accurate, comprehensive or complete, nor it is obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents by any means, BPI may introduce any changes it deems suitable, may omit partially or completely any of the elements of this document, and in case of any deviation between such a version and this one, BPI assumes no liability for any discrepancy.
• In relation to Alternative Performance Measures (APMs) as defined in the guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority on 5 October 2015 (ESMA/2015/1415), this report uses certain APMs, which have not been audited, for a better understanding of the company's financial performance. These measures are considered additional disclosures and in no case replace the financial information prepared under the International Financial Reporting Standards (IFRS). Moreover, the way the Group defines and calculates these measures may differ to the way similar measures are calculated by other companies. Accordingly, they may not be comparable. Please refer to the Annexes section for a list of the APMs used along with the relevant reconciliation between certain indicators.
• This document has not been submitted to the Comissão do Mercado of Valores Mobiliários (CMVM) (Autoridade Portuguesa do Mercado of Capitais) for review or for approval. Its content is regulated by the Portuguese law applicable at the date hereto, and it is not addressed to any person or any legal entity located in any other jurisdiction. For this reason it may not necessarily comply with the prevailing norms or legal requisites as required in other jurisdictions.
• Notwithstanding any legal requirements, or any limitations imposed by BPI which may be applicable, permission is hereby expressly refused for any type of use or exploitation of the content of this presentation, and for any use of the signs, trademarks and logotypes contained herein. This prohibition extends to any kind of reproduction, distribution, transmission to third parties, public communication or conversion by any other mean, for commercial purposes, without the previous express consent of BPI and/or other respective proprietary title holders. Any failure to observe this restriction may constitute a legal offence which may be sanctioned by the prevailing laws in such cases.

BUSINESS GROWTH AND FINANCIAL STRENGTH

• Business growth: mortgage loans +2% yoy, corporate loans +6% yoy and total customer resources +3% yoy
• Loan portfolio maintains high quality, with low NPE ratio (1.6%) and 151% coverage
• High capitalisation: CET1 ratio of 13.7% and total ratio of 17.4%
• • Net profit in Portugal of 112 M.€, up +52% yoy driven by core income growth (+16% yoy) and low and stable cost of risk (0.15%)
  • Consolidated net profit of 121 M.€ (+43% yoy)

BPI 1ST QUARTER 2024 RESULTS

Commercial activity in Portugal	Loans  yoy +0.9 Bn.€ +3%	Deposits  yoy +1.2 Bn.€ +4% Total resources +1.1 Bn.€ +3%	 yoy Core +16% income +19% Net interest income	Digital Banking Regular users 933 th. BPI app users +67 th.  yoy
Risk, liquidity and capitalisation	NPE ratio 1.6% (EBA criteria) 151% Coverage (by impairments and collaterals)	Cost of Risk 0.15% (as % of loans and guarantees; last 12 months)	Loan to deposit ratio 98% (loans as % of deposits)	13.7% CET1 15.1% T1 17.4% Total (Phasing-in)
Profit and profitability	Net profit in Portugal  yoy 112 M.€ +52%	Recurrent ROTE in Portugal 17.2% (last 12 months)	Cost-to-income in Portugal 38% (last 12 months)	Consolidated net profit  yoy 121 M.€ +43%

CONSOLIDATED NET PROFIT OF 121 M.€ IN 1Q 2024 (+43%)

In M €	23 Mar	24 Mar	Δ%	▪ Increase in income underpinned by commercial activity growth and rise in market interest rates
Activity in Portugal				Stable cost of risk ▪
profit Recurrent net	73	116	58%
impacts 1) Non-recurrent		-4	-	M.€
profit in Portugal Net	73	112	52%	-0 +3 -4 +44 Recurrent Net loan Income costs impairments tax and	116
contribution BFA	1	0	-	other 3 Commercial 7
BCI contribution	11	9	-15%	banking gross income
Consolidated profit net	85	121	+43%	Mar 23	Mar 24
				Mar 23	Mar 24
				Recurrent ROTE 9.6% (last 12 months)	17.2%

5

COMMERCIAL BANKING GROSS INCOME INCREASED 16%

6

LOAN PORTFOLIO GREW 3% YOY

Loans to Customers by segment

STABLE MORTGAGE LOANS NEW PRODUCTION

CUSTOMER RESOURCES INCREASED 3% YOY

Customer Resources					Stable market shares
In Bn €	1) Mar 23	Mar 24	YoY	YtD
deposits Customer	28 4	29 7	4%	1%	Deposits
Off-balance sheet resources	8 9	8 8	-2%	1%	Off-balance sheet
Total	37 3	38 4	3%	1%	resources 2 Customer

▪ In addition there was a 0.3 Bn.€ yoy increase in structured products placed with Customers in Mar.24.

	Feb 24	YoY 
Deposits	10 6%	+0 0 p.p.
Off-balance sheet	13 9%	-0 3 p.p.
resources 2 Customer	11 1%	+0 0 p.p.

9

DIGITAL BANKING GAINS MORE RELEVANCE

1) Cumulative number of sales of focus Products: Mutual Funds/Retirement Saving Plans, Prestige Products, Personal Loans, Credit Cards and Stand Alone Insurance. 2) BASEF Banks - March 2024 (main banks): subscription to "Net+Mobile" digital channels

10

STABLE COSTS

LOW RISK AND HIGH COVERAGE

CREDIT RENEGOTIATION

ADEQUATELY COVERED PENSIONS

Employee pension liabilities

€ M	Dec 23	Mar 24
Total liability service past	1 724	1 680
funds Pension net assets	780 1	1 777
Level of of pension liabilities coverage	103%	106%
fund Pension (YTD , non-annualised) return	8 1%	0 9%
Discount rate	3 2%	3 4%

HIGH CAPITALISATION

BALANCED FUNDING AND COMFORTABLE LIQUIDITY

1) 12-month average, in accordance with the EBA guidelines. Average value (previous 12 months) of the calculation components: Liquidity reserves (6 231 M.€); Total net outflows (3 554 M.€).

2) High Quality Liquid Assets (HQLA) of 6.4 Bn.€ and other assets eligible as collateral with ECB of 5.0 Bn.€

16

A BANK COMMITTED TO SUSTAINABILITY

2022-2024 Sustainability Master Plan
	To support the sustainable transition of companies and society	Global	Sustainable business	OBJETIVES  4 Bn.€
	To lead in social impact and promote social inclusion	Social	Investment by BPI "la Caixa" Foundation Beneficiaries	120 M.€  200 th.
	To lead in Governance best practices	Governance	Women in management positions	 43%

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

COMMITMENT TO PEOPLE, SOCIETY AND THE ENVIRONMENT

Initiatives in 1st quarter 2024

• Launch of BPI Forum – The Future of Water
• Monumental building receives Environmental Management System and AQUA+ certification
• New Energy Efficiency for SMEs programme, an initiative of Nova SBE and BPI
• Signature of APB and ADENE - Energy Agency protocol, to promote the sustainable transition of buildings
  • Talking about sustainability in the tourism sector, with the participation of Grace and ADENE

AWARDS TO SUPPORT THE ECONOMY AND INNOVATION

Launch of 6th edition

• ◼ Applications until 31 May
• ◼ Recognises the best national projects in the tourism sector
• ◼ BPI Official Bank of Lisbon Tourism Fair (BTL)

Launch of 2nd edition

• ◼ Applications until 30 April (new date)
• ◼ Recognises projects that contribute to organisations' innovation and transformation

Launch of 3rd edition

• ◼ Applications until 30 April
• ◼ Recognises innovative companies that set the example for value creation for the country.

Closure of 12th edition

• ◼ 1309 applications
• ◼ 10 awards attributed
• ◼ Personality Award: Arlindo Cunha, former Minister of Agriculture

CONSOLIDATED RESULTS

Unaudited accounts

ANNEXES

01 BPI Ratings versus peers

Income Statements and Balance sheet in accordance with IAS / IFRS and consolidated indicators

Reconciliation between BPI reported figures and BPI Segment contribution to CaixaBank Group

Alternative Performance Measures

BPI RATINGS VS. PEERS As of 26 April 2024

	(Long Term Debt/ Issuer Credit Rating)	(Long Term Debt/ Issuer rating)	(Issuer Default Rating)	(Long-Term Debt/ Issuer Rating)
e d a r G t	AAA	Aaa Mortgage bonds	AAA	AAA
	AA+	Aa1	AA+	AA (high)
	AA	Aa2	AA	Mortgage bonds AA
	AA	Aa3	AA	AA (low)
n e m	A+	A1	A+	A (high)
st e v n I	A	A2 Deposits	A	Bank 1 A
	Bank 1 A	A3	Deposits Bank 1 A Senior debt	A (low)
	BBB+	Bank1 Bank3 Baa1	BBB+	Bank 3 BBB (high)
	BBB	Bank 2 Baa2	Bank 3 BBB	Bank 2 BBB
	Bank 2 BBB	Baa3	Bank 2 Bank 5 BBB	BBB (low)
t n e	BB+	Bank 5 Ba1	BB+	Bank 5 BB (high)
	BB	Bank 4 Ba2	Bank 4 BB	Bank 4 BB
m st e	BB	Ba3	BB	BB (low)
d e a v r n g I - n o N	B+	B1	B+	B (high)
	B	B2	B	B
	B	B3	B	B (low)
	CCC+	Caa1	CCC+	CCC (high)

S&P: On 12 mar.24 S&P reaffirmed BPI's rating (BBB+) with a stable outlook and upgraded the individual assessment (stand-alone credit profile - SACP) to 'bbb'

Moody's: On 22 Nov 23, upgraded BPI deposits rating to A2 and the rating of its mortgage covered bonds to Aaa. On 26 May 23 upgraded BPI and its senior debt ratings to Baa1. The ratings' outlook is Stable.

Fitch Ratings: on 30 Jun.23 upgraded BPI's rating to BBB+, with a Stable Outlook, and its senior debt and deposit ratings to A-.

DBRS: on 4 Jul.23 upgraded BPI's mortgage covered bond rating to AA.

INCOME STATEMENT OF THE ACTIVITY IN PORTUGAL

In M €	23 Mar	24 Mar	%
Net interest income	206 4	245 1	19%
Dividend income	0 0	4 1	-
Equity accounted income	4 7	5 4	14%
fee and Net commission income	73 0	74 0	1 %
Gains/(losses) financial and liabilities and other assets on	5 5	8 0	46%
Other operating income and expenses	-26 3	-20 7	21%
income Gross	263 4	316 0	20%
Staff expenses	-61 9	-63 0	2 %
Other administrative expenses	-45 9	-46 5	1 %
and Depreciation amortisation	-17 1	-15 6	-9%
Recurring operating expenses	-124 9	-125 1	0%
Non-recurrent costs		-6 0	-
Operating expenses	-124 9	-131 2	5%
operating income Net	138 5	184 8	33%
Impairment losses and other provisions	-23 5	-19 7	-16%
and losses other Gains in assets	-1 4	0 1	-
income before income Net tax	113 6	165 3	45%
Income tax	-40 1	-53 4	33%
income Net	73 5	9 111	52%
Recurrent income net	73 5	116 0	58%

BALANCE SHEET OF THE ACTIVITY IN PORTUGAL

26

LOAN PORTFOLIO AND CUSTOMER RESOURCES

Mar 23	Mar 24	YoY	YtD
16 071	16 246	1%	0%
14 282	14 587	2%	0%
1 788	1 659	-7%	-1%
10 908	11 594	6%	1%
2 264	2 264	0%	-3%
29 243	30 104	3%	0%
28 689	29 552	3%	0%

€ In M	Mar 23	Mar 24	YoY	YtD
deposits Customer	28 415	29 660	4%	1%
Off-balance sheet resources	8 919	8 759	-2%	1%
Total	37 334	38 420	3%	1%

increased by 0.3 Bn.€ in Mar.24 YoY.

CONSOLIDATED INCOME STATEMENT

In M €	23 Mar	24 Mar	%
interest income Net	208 1	245 6	18%
Dividend income	0 0	4 1	-
Equity accounted income	16 0	14 7	-8%
fee and Net commission income	73 0	0 74	% 1
Gains/(losses) financial and liabilities and other assets on	4 8	8 6	77%
Other operating income and expenses	-26 3	-20 7	21%
income Gross	275 7	326 3	18%
Staff expenses	-61 9	-69 1	12%
Of staff which: Recurrent expenses	-61 9	-63 0	2%
Non-recurrent costs Other administrative expenses	9 -45	-6 0 -46 5	% 1
and Depreciation amortisation	-17 1	-15 6	-9%
Operating expenses	-124 9	-131 2	5%
operating income Net	150 9	195 1	29%
losses and other Impairment provisions	-23 5	-19 6	-17%
Gains and losses other in assets	-1 4	0 1	-
income before income Net tax	126 0	175 7	39%
Income tax	-41 3	-54 4	32%
income Net	84 7	121 3	43%

CONSOLIDATED BALANCE SHEET

In M.€	Dec 23	Mar 24
ASSETS
Cash and cash balances central banks and other demand deposits at	1 856	2 056
Financial held for trading fair value through profit or loss and fair assets , at at value through other comprehensive income	1 365	1 382
Financial amortised assets at cost	34 541	34 559
Of which: Customers Loans to	29 540	29 552
and Investments in joint ventures associates	221	202
Tangible assets	208	204
Intangible assets	106	102
Tax assets	170	169
Non-current and disposal groups classified as held for sale assets	15	15
Other assets	147	247
Total assets	38 628	38 936
LIABILITIES
Financial liabilities held for trading	58	51
Financial liabilities amortised at cost	33 705	34 662
Deposits - Central Banks and Credit Institutions	1 062	931
Deposits - Customers	29 252	29 661
Debt securities issued	3 106	3 808
Of which: subordinated liabilities	435	427
Other financial liabilities	286	263
Provisions	40	38
liabilities Tax	211	271
Other liabilities	639	278
Total Liabilities	34 653	35 301
Shareholders' attributable the shareholders of equity to BPI	3 975	3 635
Non controlling interests	0	0
Total Shareholders' equity	3 975	3 635
Total liabilities and Shareholders' equity	38 628	38 936

CONSOLIDATED INDICATORS

Profitability Efficiency and Liquidity Indicators , (Bank of Portugal Instruction no. 16/2004 with the amendments of Instruction 6/2018)	23 Mar	24 Mar
/ Gross income ATA	2 9%	3 4%
income before income and income attributable non-controlling interests / Net tax to ATA	3% 1	8% 1
Net income before income and income attributable non-controlling interests / tax to shareholders' (including non-controlling interests) equity average	13 0%	7% 17
income 1 ) Staff / Gross expenses	22 4%	19 3%
income 1 ) Operating / Gross expenses	45 3%	38 3%
(net) deposits Loans ratio to	101%	100%
ratio and forborne NPE (according the EBA criteria) to	23 Mar	24 Mar
Non-performing - NPE (M €) exposures	590	589
NPE ratio	1 6%	1 6%
by NPE impairments coverage	96%	96%
by and collaterals NPE impairments coverage	156%	151%
NPE 2) Ratio of forborne included in not	0 8%	2% 1
"Crédito duvidoso" (non-performing loans) (according Bank of Spain criteria) to	Mar 23	Mar 24
€) 3) "Crédito duvidoso" (M	594	556
"Crédito duvidoso" ratio	1 9%	1 7%
"Crédito duvidoso" by impairments coverage	96%	101%
"Crédito duvidoso" by and collaterals impairments coverage	154%	155%

30

2) Forborne according to EBA criteria. On March 2024, the forborne was 757 M.€ (forborne ratio of 1.8%), of which 507 M.€ was performing loans (1.2% of the gross credit exposure) and 250 M.€ was included in NPE (0.6% of the gross credit exposure).

3) Includes guarantees provided (recorded off-balance sheet).

¹⁾ Excluding early-retirement costs.

RECONCILIATION BETWEEN BPI REPORTED FIGURES AND BPI SEGMENT CONTRIBUTION TO CAIXABANK GROUP

Profit & loss account

		BPI	Business segment
(M.€) Mar 24	As reported by BPI	contribution to CABK Group	BPI	Corporate Center
Net interest income	246	245	242	2
Dividends	4	4	4
accounted Equity income	15	15	5	9
fees and commissions Net	74	74	74
Trading income	9	10	9	1
Other operating income & expenses	( 21)	( 20)	( 20)
Gross income	326	327	315	12
Operating expenses	( 125)	( 130)	( 130)
Extraordinary operating expenses	( 6)
Pre-impairment income	195	197	185	12
Impairment losses on financial assets	( 20)	( 20)	( 20)	0
Other impairments and provisions	0	( 2)	( 2)	( 0)
Gains/losses on disposals others &	0	0	0	0
income Pre-tax	176	176	164	12
Income tax	( 54)	( 54)	( 52)	( 2)
Profit for the period	121	122	111	11
other Minority interests &
income Net	121	122	111	11

Loan portfolio & customer resources

March 2024 (M.€)	As reported by BPI	Adjustments	BPI contribution to (BPI segment) CABK Group
Loans and advances to customers, net	29 552	( 102)	29 449
Total funds customer	38 420	(4 256)	34 164

Profit & loss account

The difference between the results disclosed by BPI and its contribution to the group corresponds to consolidation adjustments derived from intragroup eliminations, reclassifications to standardize presentation criteria in the income statement and certain remaining adjustments from the business combination.

Additionally, BPI contribution to CaixaBank Group results is broken down into BPI segment and Corporate Center segment, the latter including the contributions from BFA and BCI.

Loan portfolio & customer funds

The difference between BPI reported figures and those reported by CaixaBank for the BPI segment can largely be explained by:

• In loans and advances to customers, net, consolidation adjustments (elimination of intra-group balances);
• In total customer funds, by the liabilities under insurance contracts and their fair value adjustments at 31 March 2024, as generated by the business combination, which have been reported in the banking and insurance business segment of CaixaBank following the sale of BPI Vida to VidaCaixa de Seguros y Reaseguros.

Reconciliation of the profit & loss account structure

• The European Securities and Markets Authority (ESMA) published on 5th October 2015 a set of guidelines relating to the disclosure of Alternative Performance Measures by entities (ESMA/2015/1415). These guidelines are mandatory to issuers with effect from 3rd July 2016.
• In addition to the financial information prepared in accordance with the International Financial Reporting Standards (IFRS), BPI uses a set of indicators for the analysis of performance and financial position, which are classified as Alternative Performance Measures, in accordance with the abovementioned ESMA guidelines. The information relating to those indicators has already been object of disclosure, as required by ESMA guidelines.
• In the current presentation, the information previously disclosed is included by way of cross-reference and a summarized list of the Alternative Performance Measures is presented next.

The following table shows, for the consolidated profit & loss account, the reconciliation of the structure used in this document (Results' Presentation) with the structure adopted in the financial statements and respective notes of the Report and Accounts.

Adopted acronyms and designations			Units, conventional sings and abbreviations
YtD		Year-to-date change	€, Euros, EUR		euros
YoY		Year-on-year change	th.€, th.euros		thousand euros
QoQ		quarter-on-quarter change	M.€, M.euros		million euros
ECB		European Central Bank	Bn.€, Bi.€		billion euros
BoP		Bank of Portugal			change
CMVM		Securities Market Commission	n.a.		not available
APM		Alternative Performance Measures	0, –		null or irrelevant
MMI		Interbank Money Market	vs.		versus
T1		Tier 1	b.p.		basis points
CET1		Common Equity Tier 1	p.p.		percentage points
RWA		Risk weighted assets	E		Estimate
TLTRO		Targeted longer-term refinancing operations	F		Forecast
LCR		Liquidity coverage ratio
NSFR		Net stable funding ratio

Reconciliation of the consolidated profit & loss account structure

Structure used in the Results' Presentation	24 Mar	24 Mar	Structure presented in the financial and respective statements notes
Net interest income	245.6	245.6	Net interest income
Dividend income	4.1	4.1	Dividend income
Equity accounted income	14.7	14.7	Share of the profit or (-) loss of investments in subsidiaries, joint and associates accounted for using the equity method ventures
fee and Net commission income	74.0	81.5	and Fee commission income
		-7.5	Fee and commission expenses
Gains/(losses) on financial and liabilities and assets	8.6	0.0	Gains or (-) losses on derecognition of financial and liabilities measured fair value through profit or loss, assets not at net
other		1.5	or (-) losses on financial and liabilities held for trading, Gains assets net
		-0.3	Gains or (-) losses on non-trading financial mandatorily fair value through profit or loss, assets at net
		3.7	Gains or (-) losses from hedge accounting, net
		3.7	Exchange differences [gain or (-) loss], net
Other operating income and expenses	-20.7	5.7	Other operating income
		-26.5	Other operating expenses
income Gross	326.3	326.3	GROSS INCOME
Staff expenses	-69.1	-69.1	Staff expenses
Other administrative expenses	-46.5	-46.5	Other administrative expenses
Depreciation and amortisation	-15.6	-15.6	Depreciation
Operating expenses	-131.2	-131.2	Administrative expenses and depreciation
operating income Net	195.1	195.1
Impairment losses and other provisions	-19.6	1.0	Provisions or (-) reversal of provisions
		-20.5	Impairment or (-) reversal of impairment on financial measured fair value through profit or loss assets not at
and losses other Gains in assets	0.1		or (-) reversal of of subsidiaries, and Impairment impairment investments in joint ventures associates
			Impairment or (-) reversal of impairment on non-financial assets
			Gains or (-) losses on derecognition of subsidiaries, and investments in joint ventures associates, net
		0.0	or (-) losses on derecognition of non financial Gains assets, net
		0.1	Profit or (-) loss from and disposal groups classified as held for sale qualifying as discontinued non-current assets not operations
Net income before income tax	175.7	175.7	PROFIT OR (-) LOSS BEFORE TAX FROM CONTINUING OPERATIONS
Income tax	-54.4	-54.4	related profit or loss from Tax expense or income to continuing operations
Net income from continuing operations	121.3	121.3	PROFIT OR (-) LOSS AFTER TAX FROM CONTINUING OPERATIONS
Net income from discontinued operations			Profit or (-) loss after from discontinued operations tax
attributable non-controlling Income to interests			Profit or (-) loss for the period attributable non-controlling to interests
Net income	121.3	121.3	PROFIT OR (-) LOSS FOR THE PERIOD ATTRIBUTABLE TO OWNERS OF THE PARENT

EARNINGS, EFFICIENCY AND PROFITABILITY INDICATORS	The following earnings, efficiency and profitability indicators are defined by reference to the above structure of the profit and loss account used in this document.
Gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income + Gains/(losses) on financial assets and liabilities and other + Other operating income and expenses
Commercial banking gross income	Net interest income + Dividend income + Net fee and commission income + Equity accounted income excluding the contribution of stakes in African banks
Operating expenses	Staff expenses + Other administrative expenses + Depreciation and amortisation
Net operating income	Gross income – Operating expenses
Net income before income tax	Net operating income – Impairment losses and other provisions + Gains and losses in other assets
Cost-to-income ratio (efficiency ratio) 1)	2 Operating expenses, excluding costs with early-retirements and voluntary terminations and other non recurrent / Gross income
Cost-to-core income ratio (core efficiency ratio)1)	[Operating expenses, excluding costs with early-retirements and voluntary terminations and other non recurrent – Income from services rendered to CaixaBank Group (recorded under Other operating income and expenses)] / Commercial banking gross income
Return on Equity (ROE)1)	Net income for the period, less the interest cost of AT1 capital instruments recorded directly in shareholders' equity / Average value in the period of shareholders' equity attributable to BPI shareholders, excluding AT1 capital instruments
Return on Tangible Equity (ROTE)	1) Net income for the period, less the interest cost of AT1 capital instruments recorded directly in shareholders' equity / Average value in the period of shareholders' equity attributable to BPI shareholders (excl. AT1 capital instruments) after deduction of intangible net assets and goodwill of equity holdings
Assets (ROA)1) Return on	(Net income attributable to BPI shareholders + Income attributable to non-controlling interests - preference shares dividends paid) / Average value in the period of net total assets
Unitary intermediation margin	Loan portfolio average interest rate, excluding loans to employees – Deposits average interest rate
BALANCE SHEET AND FUNDING INDICATORS
On-balance sheet Customer resources3)	Deposits + Capitalisation insurance of fully consolidated subsidiaries + Participating units in consolidated mutual funds ▪ Deposits = Demand deposits and other + Term and savings deposits + Interest payable + Retail bonds (Fixed rate bonds placed with Customers) ▪ Capitalisation insurance of fully consolidated subsidiaries (BPI Vida e Pensões sold on Dec.17)
Off-balance sheet Customer resources4)	Mutual funds + Capitalisation insurance + Pension plans + Subscriptions in public offerings ▪ Mutual funds = Unit trust funds + Real estate investment funds + Retirement-savings and equity-savings plans (PPR and PPA) + Hedge funds + Assets from the funds under BPI Suisse management + Third-party unit trust funds placed with Customers. ▪ Capitalisation insurance = Third-party capitalisation insurance placed with Customers ▪ Pension plans = Pension plans under BPI management (includes BPI pension plans) ▪ Subscriptions in public offerings = Customers subscriptions in third parties' public offerings

¹⁾ Ratio referring to the last 12 months, except when indicated otherwise. The ratio can be computed for the cumulative period since the beginning of the year, in annualised terms. 2) Excluding non-recurrent.

3) The amount of on-balance sheet Customer resources is not deducted from the applications of off-balance sheets products (mutual funds and pension plans) in on-balance sheet products.

BALANCE SHEET AND FUNDING INDICATORS (continuation)
Total Customer resources	On-balance sheet Customer resources + Off-balance sheet Customer resources
Gross loans to customers	Gross loans and advances to Customers (financial assets at amortised cost), excluding other assets (guarantee accounts and others) and reverse repos + Gross debt securities issued by Customers (financial assets at amortised cost) Note: gross loans = performing loans + loans in arrears + receivable interests
Net loans to Customers	Gross loans to Customers – Impairments for loans to Customers
Loan-to-deposit ratio (CaixaBank criteria)	(Net loans to Customers - Funding obtained from the EIB, which is used to provide credit) / Deposits and retail bonds
ASSET QUALITY INDICATORS
Impairments and provisions for loans and guarantees (income statement)	Impairment or reversal of impairment on financial assets not measured at fair value through profit or loss relative to loans and advances to Customers and to debt securities issued by Customers (financial assets at amortised cost), before deduction of recoveries of loans previously written off from assets, interest and others + Provisions or reversal of provisions for commitments and guarantees
Cost of credit risk	Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other
	Cost of credit risk as % of loan portfolio1) (Impairments and provisions for loans and guarantees - Recoveries of loans previously written off from assets, interest and other) / Average value in the period of the gross loans and guarantees portfolio.
Performing loans portfolio	Gross Customer loans - (Overdue loans and interest + Receivable interests and other)
NPE and NPL ratios	Ratio of non-performing exposures (NPE) and ratio of non-performing loans (NPL) in accordance with the EBA criteria (prudential perimeter)
Coverage of NPE or NPL	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / [Non-performing exposures (NPE) or Non-performing loans (NPL)]
Coverage of NPE or NPL by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collaterals associated to NPE or NPL] / [Non-performing exposures (NPE) or Non-performing loans (NPL)]
Non-performing loans ratio ("credito dudoso", Bank of Spain criteria)	Non performing loans ("credito dudoso", Bank of Spain criteria) / (Gross Customer loans + guarantees)
Non-performing loans coverage ratio	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Coverage of non-performing loans by impairments and associated collaterals	[Impairments for loans and advances to Customers (financial assets at amortised cost) + Impairments for debt securities issued by Customers (financial assets at amortised cost) + Impairments and provisions for guarantees and commitments + Collateral associated to credit] / Non performing loans ("credito dudoso", Bank of Spain criteria)
Impairments cover of foreclosed properties	Impairments for real estate received in settlement of defaulting loans / Gross value of real estate received in settlement of defaulting loans

1) Ratio referring to the last 12 months, except when indicated otherwise. The ratio can be computed for the cumulative period since the beginning of the year, in annualised terms.

BANCO BPI, S.A. Registered office: Avenida da Boavista 1117, Porto, Portugal Share capital: € 1 293 063 324.98 Registered at Commercial Registry of Porto under registration number PTIRNMJ 501 214 534 and tax identification number 501 214 534